U.S. markets open in 8 hours 31 minutes
  • S&P Futures

    4,124.00
    +6.00 (+0.15%)
     
  • Dow Futures

    33,689.00
    +65.00 (+0.19%)
     
  • Nasdaq Futures

    13,816.25
    +17.50 (+0.13%)
     
  • Russell 2000 Futures

    2,251.50
    +6.50 (+0.29%)
     
  • Crude Oil

    63.02
    -0.13 (-0.21%)
     
  • Gold

    1,740.20
    +3.90 (+0.22%)
     
  • Silver

    25.50
    -0.02 (-0.07%)
     
  • EUR/USD

    1.1975
    -0.0009 (-0.07%)
     
  • 10-Yr Bond

    1.6380
    0.0000 (0.00%)
     
  • Vix

    16.99
    +0.34 (+2.04%)
     
  • GBP/USD

    1.3767
    -0.0013 (-0.10%)
     
  • USD/JPY

    108.8630
    -0.0640 (-0.06%)
     
  • BTC-USD

    63,082.84
    -626.55 (-0.98%)
     
  • CMC Crypto 200

    1,374.60
    -1.18 (-0.09%)
     
  • FTSE 100

    6,939.58
    +49.09 (+0.71%)
     
  • Nikkei 225

    29,644.19
    +23.20 (+0.08%)
     

Apple Not Acquiring Netflix The 'Biggest Strategic Mistake' Jobs, Cook Made In Last Decade, Says Analyst

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Shivdeep Dhaliwal
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Apple Inc (NASDAQ: AAPL) made a big mistake by not acquiring the subscription video-on-demand company Netflix Inc (NASDAQ: NFLX) when it had the chance, Wedbush analyst Daniel Ives told Yahoo Finance.
What Happened: Ives, who has an Outperform rating Apple, said that not buying Netflix was the “biggest strategic mistake” in his opinion over the last 10 to 12 years by deceased founder Steve Jobs and current CEO Tim Cook.

Ives referred to the relatively thin content choices on Apple TV+ in comparison with competitors such as Netflix and Walt Disney Co’s (NYSE: DIS) plus service and said it was akin to owning a mansion but having little to furnish it with.

“That's the problem when it comes to this arms race we’re seeing especially with Disney and of course Netflix at top of the heap.”

See also: How To Buy Apple Stock

Why It Matters: The purchase of Netflix would have given Apple a huge stake in the video streaming market and removed the need to build its own content library from scratch, noted Yahoo Finance.

Apple TV+ features include “The Morning Show”, “Ted Lasso,” and “For All Mankind.”

Ives said that the way for Apple to stop being the laggard is to purchase a Hollywood studio.

See Also: Should Apple Try To Acquire Netflix Or Peloton In 2021?

“We’ve talked about an MGM, a Lionsgate, an A24, otherwise they’re going to continue to sort of be on the outside looking in,” said Ives.

“And that’s why I think this is something they’re going to be forced into...because it’s all about content.”

Netflix co-founder Marc Randolph said this month that the iPhone maker has “no excuse” for not finding footing in the SVOD space and is “still not in it with both feet.”

Randolph had kinder words for Disney and said he had “the deepest respect” for the company right now.

Price Action: Apple shares closed nearly 0.1% lower at $125.86 on Tuesday and fell almost 0.3% in the after-hours session. On the same day, Netflix shares closed 2.32% in the regular session and fell nearly 0.2% in extended trading.

For news coverage in Italian or Spanish, check out Benzinga Italia and Benzinga España.

Latest Ratings for AAPL

Feb 2021

RBC Capital

Assumes

Outperform

Jan 2021

DA Davidson

Maintains

Buy

Jan 2021

Deutsche Bank

Maintains

Buy

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.